CHAPTER 132

FORMERLY

SENATE BILL NO. 189

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE CALCULATION OF PENSION BENEFITS IN THE COUNTY AND MUNICIPAL GENERAL EMPLOYEES' PENSION PLAN.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §5577, Chapter 55A, Title 29, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new section to read as follows:

“§5577. The amount of the monthly service or disability pension payable to a retired member shall be 1/60 of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service.”

Section 2. Amend §5578(b), Chapter 55A, Title 29, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new section to read as follows:

“(b) Upon the death of a retired member, a monthly survivor's pension shall be payable to his or her eligible survivor or survivors equal to one half of such service or disability pension.”

Section 3. Amend §5591(a), Chapter 55A, Title 29, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new section to read as follows:

“(a) Effective January 1, 2006, employee contributions to the Fund shall be 3% of total annual compensation in excess of $6,000. In no event shall total compensation during any calendar year in excess of $6,000 be exempt from contributions.”

Section 4. Amend Chapter 55A, Title 29, Delaware Code by adding thereto a new Section 5582 to read as follows:

Ҥ5582 Increases in Pensions.

Any monthly service pension, disability pension or survivor pension based on a former service or disability pension which is payable on the date this subsection is enacted into law shall be increased effective July 1, 2005, by the amount of difference between the pensioner's computed benefit under §5577 of this title, as effective July 1, 2005, less the benefit previously awarded under §5577 of this title.”

Section 5. Amend §5572(a)(1), Chapter 55A, Title 29, Delaware Code, by striking the number “65” wherever it appears therein and substituting in lieu thereof the number “62”.

Section 6. Amend §5551(4)(c), Chapter 55A, Title 29, Delaware Code, by striking the number “10” wherever it appears therein and substituting in lieu thereof the number “5”.

Section 7. Amend §5580, Chapter 55A, Title 29, Delaware Code, by striking the sentence “There shall be a rebuttable presumption that a former member who fails to apply for a withdrawal benefit within 5 years after the date he or she first becomes eligible to receive such benefits has waived his or her right to the withdrawal benefit.” wherever it appears therein.

Section 8. The effective date of this act shall be July 1, 2005, with the exception of Section 3 which shall become effective on January 1, 2006.

Approved July 7, 2005